January 50,000 bottles
February 90,000 bottles
March 145,000 bottles
The company’s policy is to have 30% of the subsequent month’s anticipated sales in inventory at the end of a month. December’s ending inventory reflects this policy. April’s sales are budgeted at 90,000 bottles. Prepare a production budget for January, February, and March, 2008.
1. (TCO 9) A project will require an initial investment of $600,000 and is expected to generate the following cash flows: Year 1 $100,000 Year 2 $250,000 Year 3 $250,000 Year 4 $200,000 Year 5 $100,000(a) What is the project's payback period?(b) If the required rate of return is 20% and taxes are ignored, what is the project's net present value? (Points : 25)
3. Idol Company has developed standards for the materials required to produce a single unit of Model IWIN: 25 pounds of Supreme at $130.00 per pound Last month, Idol purchased 490,000 pounds of Supreme at a total cost of $61,250,000. Idol used 482,000 pounds of Supreme to make 19,000 units of IWIN.
One fine body…